 "Belrise Industries shares extend gain to rise 5% after defence agreement")
Shares of Belrise Industries Ltd. rose over 5 per cent on Wednesday after the company announced a strategic agreement with Israel-based Plasan Sasa to explore defence-related business opportunities.
The auto components maker's stock rose as much as 5.4 per cent during the day to ₹177.28 per share, the biggest intraday rise since December 23 this year. The stock pared gains to trade 2.2 per cent higher at ₹171 apiece, compared to a 0.12 per cent advance in Nifty 50 as of 10:45 AM.
Shares of the company rose for the second straight session and currently trade at 5.2 times the average 30-day trading volume, according to Bloomberg. The counter has risen 71 per cent since its listing this year, compared to an 11 per cent advance in the benchmark Nifty 50 this year. Belrise Industries has a total market capitalisation of ₹15,261.43 crore.
Belrise Industries signs strategic defence agreement
Belrise Industries and Plasan SASA will jointly identify and pursue defence-related business opportunities in India, the company said in an exchange filing. These include tenders issued by the Ministry of Defence, public sector undertakings, paramilitary forces and other government authorities.
Plasan Sasa is a global provider of survivability and armour solutions for military vehicles and personnel, with its protection systems deployed across multiple international defence markets.
The partnership will focus on technical development, process collaboration and capability building. Belrise aims to become a key supplier of sub-systems and systems within Plasans global supply chain. The collaboration also seeks to expand Plasans' footprint in India, including joint participation in opportunities linked to the ATEMM platform, subject to regulatory approvals.
Belrise said the agreement was entered into in the ordinary course of business and is expected to support its long-term strategic and technological objectives. The company added that the partnership aligns with the government's Make in India and Atmanirbhar Bharat initiatives through localisation and potential technology transfer.
On Monday, Belrise Industries and Plasan Sasa announced a strategic agreement to jointly pursue opportunities in the Indian military market with the innovative ATEMM systems. The share price of Belrise Industries hit an all-time high of ₹178.45 after this announcement.
Belrise Industries is strategically expanding its 4W segment, aiming to double revenue from this category over the next 2-2.5 years. This growth is expected to be driven by a strengthened product portfolio and the acquisition of H-One, which brings advanced technology in high-tensile steel components (up to 1,100 MPa) and access to two key Japanese OEMs, according to analysts at JM Financial Institutional Securities.